(Reuters, 6.Feb.2020) — Mexico spent more than 25 billion pesos ($1.37 billion) on its 2020 oil hedging program, the country’s finance ministry confirmed on Wednesday after financial website Sentido Comun reported the figure.
The hedging program, the world’s largest, is to insure Mexico’s revenues from oil sales against price crashes.
The finance ministry initially declined to reveal how much had been spent on the 2020 oil hedge, saying the information would give speculators insight into its strategy and raise the costs further.
Last year, the finance ministry went to new lengths to mask its attempts to insure its revenues from oil sales against falling prices and contain the annual bill that has spiraled in recent years.
The overall bill for the oil hedge is 8.4% higher than in the previous year, Sentido Comun reported.